Direct Request (CEACR) - adopted 2005, published 95th ILC session (2006)

Employment Policy Convention, 1964 (No. 122) - Panama (Ratification: 1970)

1. The Committee notes the Government’s report for the period ending in October 2004. In its direct request of 2003, the Committee observed that the unemployment rate had reached 13.7 per cent in 2001: in 2003, the unemployment rate fell to 12.7 per cent (13.5 per cent in 2002) thanks to an increase in employment, while the percentage of the economically active population of working age had remained constant. The unemployment rate fell more rapidly in urban areas than in rural areas. The new Government, which came into power on 1 September 2004, aims, inter alia, to achieve sustained economic growth in order to reduce the high level of unemployment, consolidate public finances, modernize the State, promote the competitiveness and development of the private sector and modernize basic infrastructure. The Committee is pleased that the new Government has decided to take advantage of ILO technical cooperation as the Government endeavours to update the proposals in the employment policies revision exercise. The Committee requests that the Government, in its next report, indicate the results, in terms of employment creation, that have been achieved by organizing and integrating in a coherent manner the work and training programmes and services of the Ministry of Labour with other public programmes such as those of the National Vocational Training Institute (INAFORP) and other non-governmental sector programmes (Labour Foundation, Private Sector Council for Educational Assistance). The Committee reiterates that it would like detailed information on the measures adopted to develop infrastructure and their impact on the creation of employment, and on the manner in which negotiated trade agreements influence the labour market (Article 1 of the Convention).

2. The Committee notes the information provided on the programmes implemented by the General Employment Directorate and the Job Training Bureau. The Government has provided detailed information on the activities carried out within the employers’ self-management programme. The Committee reiterates the importance of including in the report information on the results of programmes implemented to create productive and high-quality work. The Committee would also welcome information on the manner in which the most vulnerable groups - women heads of household, young persons entering the labour market, older workers, workers in the informal sector, rural and indigenous populations - have benefited from such programmes. In this regard, the Committee asks that the Government include in its report information on the impact on employment of the measures adopted to promote economic development and describe the manner in which it ensures that the principal employment policy measures decided on are kept under review within the framework of a coordinated economic and social policy, as required under Article 2 of the Convention.

3. The Committee notes with interest the progress made by a pilot project to support the development of labour skills in Panama and hopes that the Government will continue to include information in its report on the programmes and projects that are carried out by the General Employment Directorate and the National Vocational Training Institute (INAFORP) to ensure the coordination of education and vocational training policies with employment policy. Such coordination is vital if each worker is to have the opportunity to acquire the training needed to take up a suitable job and use the training and skills that he possesses in that job.

4. Article 3. The Committee requests that the Government include in its next report updated information on the consultations held within the framework of the Labour Foundation and the initiatives taken with the social partners to contribute to the formulation and implementation of the employment policy. The Government could also consider including representatives of the most vulnerable groups, referred to in paragraph 2 of this direct request, in the consultations required by the Convention when formulating and seeking support for the implementation of employment policy programmes and measures.